FXI Dividend Type Payments

iShares China Large-Cap ETF dividend

Although FXI has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on iShares China Large-Cap ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 4:16 PM ET):

iShares China Large-Cap ETF (FXI)
Bid Ask Last Change Volume P/E Market Cap
40.41 40.49 40.41 -0.56 23.7M - 0.0B

FXI Dividend-Like Income Using Covered Calls

With FXI at 40.41, here's a table showing how big the annual "dividend" (ie. total annual call premium received) would need to be to attain 3%, 5%, and 10% annual yields. Also shown is the equivalent number of cents/day necessary to achieve each yield:

Annual Yield Annual Premium Cents/Day
3% 1.21 0.3
5% 2.02 0.6
10% 4.04 1.1

So now we need to find out of the money covered calls that pay at least the prescribed cents/day amount of time premium. That will generate income and, because they are out of the money, leave room for some upside potential on the stock. Here are some examples:

3% Yield On FXI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 24 42.50 0.02 5 0.4 2.01 (5.0%)
May 31 42.50 0.04 12 0.3 2.01 (5.0%)
5% Yield On FXI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 24 41.50 0.05 5 1.0 1.01 (2.5%)
May 31 42.00 0.08 12 0.7 1.51 (3.7%)
10% Yield On FXI Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
May 24 41.00 0.16 5 3.2 0.51 (1.3%)
May 31 41.50 0.17 12 1.4 1.01 (2.5%)

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Want more examples? FXH Dividend | FXL Dividend